Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $633,000 was subject...

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Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $633,000 was subject to the 6.0% social security tax and $779,000 was subject to the 1.5% Medicare tax. Also, $21,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.6%. b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank. Payroll Tax Entries According to a summary of the payroll of Guthrie Co., $633,000 was subject to the 6.0% social security tax and $779,000 was subject to the 1.5% Medicare tax. Also, $21,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.2%; federal unemployment, 0.6%. b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

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ANSWER a To calculate the employers payroll taxes well first find the amounts of each tax and then s... View the full answer